2025 FEHB Open Season: Changes to Consider
Each year, the Office of Personnel Management (OPM) offers an annual Open Season period for Federal Employee Health Benefits (FEHB). During this time, you may evaluate your benefits and make any necessary changes.
Federal employees are facing many decisions this season, including the 2025 FEHB Open Season. Navigating these choices can be complicated but doesn’t need to be overwhelming. Below, you’ll find an overview of the changes in Federal benefit offerings. These changes could impact what plans will best fit your needs, especially if you’ve had any life-changing events in the last year, such as a marriage or the birth of a child.
It’s important to understand what your benefit options are in the new year and we hope this overview will help you navigate Open Season with confidence!
When Is 2025 FEHB Open Season?
This year, Open Season runs from Monday, November 11, 2024 through Monday, December 9, 2024. Any plan changes will go into effect on January 1, 2025. During this period, active Federal employees can do the following:
· Enroll in a Federal Employees Health Benefits plan for the first time
· Change health plans or options within a program
· Opt-out of a plan in which you’re enrolled
· Change your enrollment type (self-only, self plus one, or family coverage)
· Adjust contributions to your Federal Flexible Spending Account (FSA) for dependent care or health care
Retirees cannot enroll in a medical plan for the first time, but they can make changes to their current enrollments.
What’s New for OPM Open Season This Year?
2025 will see fairly significant changes in Federal benefits, with premium increases and the launch of the Postal Service Health Benefits (PSHB) program.
Will FEHB premiums increase in 2025?
Yes. Federal employees and retirees will experience the largest annual increase in their health insurance costs in at least a decade. Those enrolled in FEHB will pay an average of 13.5% more in 2025. This follows a 7.7% average increase in 2024 and an 8.7% average increase in 2023. The FEHB premium rates are calculated each year by OPM and are based on how federal employees and retirees used their health care plans during the previous year.
Additional changes in 2025
· There are fewer plans available in 2025 – 42 carriers will offer 64 plans and a total of 130 plan options (compared to 158 in 2024 and 271 in 2023).
o Some plan options are specific to certain regions or agencies.
· FEHB enrollees will see more options for “comprehensive” coverage of in vitro fertilization (IVF), with Blue Cross Blue Shield and GEHA offering a $25,000 benefit to cover the cost of IVF.
· Carriers will be required to cover at least one anti-obesity GLP-1 drug and at least two oral anti-obesity drug options.
· Carriers will be required to offer comprehensive “behavioral therapy, covering appropriate diet and exercise regimens, for those prescribed anti-obesity medications,” said OPM.
· All 64 FEHB plans will offer postpartum depression mental health treatment.
· FEDVIP premiums for dental plans will increase by 2.97% on average, with vision plans increasing by 0.87%. Dental premiums increased by 4% in 2024; vision plans increased by 1%.
What If I Do Nothing?
Your current coverage will automatically continue. If you are satisfied with your current FEHB plan, you do not need to take any action.
What About Benefits Other Than the Medical Plan?
Open Season includes the Federal Dental and Vision Insurance Program, flexible spending accounts, and life insurance.
Dental and Vision
The Federal Employees Dental and Vision Insurance Program offers eligible participants a choice between 14 plan options for 2025 (a decrease from 2024) and 10 vision plans (the same as last year).
Postal employees and annuitants remain eligible for FEDVIP, a change that was made in 2023.
FSA (Flexible Spending Account)
During Open Season, active employees can sign up for health care, a dependent care flexible spending account (FSA), or both. Medical, dental, and vision enrollments roll over unless you make changes, but you must re-enroll every year to keep your FSA contributions going.
Life Insurance
The Federal Employees’ Group Life Insurance (FEGLI) Program and the Federal Long Term Care Insurance Program (FLTCIP) do not participate in Open Season. While life insurance is not part of Open Season, you can still apply for Group Term Life Insurance from WAEPA at any time during the year. Open Season is an excellent time to do an annual review of your life insurance needs.
How Do I Determine What’s Best for My Situation?
OPM provides an online tool to compare the available plans/rates. You can search for available options based on location or employee type and you can review changes to your existing plan.
The most important step is to carefully assess your own medical and financial situation. Here are some questions to help you get started:
Existing Medical Conditions
Do you or any covered family member have a medical condition that will require extensive treatment in 2025? If so, it may be worth purchasing a plan that pays out more on your claims.
Minimal Medical Needs
If you have a healthy family and only anticipate minor illnesses, a less expensive plan can help you build up your savings account. Consult with a trusted benefits advisor or your HR department for more information.
Compare Your Spouse’s Medical Plan
If you are married, compare your coverage with the options offered by your spouse’s employer. The FEHB program often provides better coverage at a lower cost, so switching plans can help save money without sacrificing benefits.
Open Season provides the opportunity to review your medical, dental, vision, life insurance, and FSA options.
Life-changing events can influence your benefit choices, but when it comes to life insurance, don’t assume Federal Employees’ Group Life Insurance (FEGLI) is the best option.
What is the Postal Service Health Benefits (PSHB) program?
2025 will be the inaugural year of the new Postal Service Health Benefits (PSHB) program. As of January 2025, one-fifth of FEHB enrollees will be transferred to this new system. This includes about 1.9 million USPS employees, annuitants, and their families. The PSHB program is meant specifically for the Postal Service and is a requirement of the 2022 Postal Service Reform Act. The 2022 law mandated that OPM establish a health program specifically for USPS by January 2025.
What are the 2025 PSHB Plan Options?
In 2025, PSHB enrollees will have 69 plan options across 30 health carriers to choose from. Some of these plans are specific to certain geographic regions or agencies.
PSHB enrollees will also see a lower increase in premiums than FEHB participants – 11.1% more on average (compared to 13.5%)
Medicare-eligible Postal annuitants and their family members will need to enroll in Medicare Part B to be able to access PSHB benefits. All PSHB benefits will align with FEHB, with the exception of prescription drug benefits.
Explore life insurance options for USPS employees >
Worldwide Assurance for Employees of Public Agencies (WAEPA) offers life insurance For Feds, By Feds. Coverage from WAEPA can serve as an economical supplement or replacement for FEGLI. On average, members who switched from FEGLI to WAEPA saved over $300 a year.
WAEPA also offers exclusive member benefits tailored specifically to Civilian Feds and their families, including free financial planning, premium refunds,** scholarships, and more. Learn more about WAEPA today.
